Early February, Wall Street plunges downward as the DOW Jones sends investors into a panic. How does this compare to other stock market dips of the past? Should we look for warning signs?
Not yet, exactly. This dip in the stock market (which has since recovered) does not represent a crash. The dip would have to be greater for it to be considered a crash, to at least 30%. At around 11%, this is more likely classified as a correction. If it fell further, it would be classified as a bear market.
The important thing to take away is that this may not be cause for panic, yet anyway. Stock market ebbs and flows are a normal part of the economy. We should be on the lookout for changes in the future and it is a fact that this upward spike could not sustain itself forever.
Hannah Jay and Anthony Licciardello discuss the impacts of these fluctuations on real estate, including how they affect the real estate market and how to spot true warning signs. We talk in depth about Anthony's extensive report on the financial meltdown of 2009 and Mortgage Crisis of 2007, which can be found in www.SI-Dex.com (part 1 is linked below for your reference).